CEIBA Investments Limited

Investing in real estate and other real assets in Cuba

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Latest news

An update from our investment manager, Sebastiaan Berger - Friday 2 October 2020

On 29 September 2020, CEIBA Investments Limited (“CEIBA” or the “Fund”) published its results for the six months to 30 June 2020. The NAV per Share at 30 June 2020 was US$1.29 (104.3p) compared to US$1.50 (114.5p) at 31 December 2019 and the loss in the first six months of the financial year was US$0.21 (17.3p) compared to a loss of $0.04 (2.9p) for the same period last year.  Although the valuation of assets of the Fund as well as earnings in respect of the six months ended 30 June 2020 have clearly been negatively impacted by the Covid-19 pandemic, the results were perhaps not as bad as one would have expected.  If one discards the change in fair values of the assets of the Fund, the result of the Fund over the reporting period was US$2,636,154 (positive), as a result of the fact that during the first half of 2020, the Fund received US$6,884,559 million in dividend income from its Cuban joint ventures. 

The Manager and the Board are optimistic that the valuations could see positive results when the situation with respect to Covid-19 is normalized and that there are other positive factors that may in the months ahead potentially have a strong impact on the present level of volatility in the valuations.  These factors include the possible election of Joe Biden in the Presidential elections in the United States in November of this year as well as ongoing reform efforts of the Cuban government, which we hope will result in improvements to the economic conditions under which the Cuban joint venture companies operate. Of course, the fact that Donald Trump tested positive for the coronavirus may have a huge impact on the U.S. Presidential elections.  

Pleasingly, during the first six months of 2020, the Fund’s largest asset - the Miramar Trade Centre, in which it holds a 49% interest – operated at almost full occupancy levels, with income and net profits ahead of those achieved during the same period last year.  With regard to the hotel interests of the Company, the Meliã Habana has remained open throughout the pandemic with a skeleton capacity of 30 rooms and one semi-functional restaurant providing take-away meals.  All of the other hotels, which are located in Varadero, were closed at the end of March and only one has partially reopened since then.  Meliã, the operator of each of the hotels, has recently put forward proposals whereby the Sol Palmeras hotel and the Meliã Habana will continue to operate at very modest occupancy levels until the end of the year.  It is not anticipated that the other two hotels within Miramar - the Meliã Varadero and the Meliã las Americas - will reopen during the present year.  

Progress on the construction of the beachfront hotel near Trinidad being undertaken by TosCuba, in which the Fund has a 40% interest, has advanced steadily throughout the year and all of the structural works are now complete. Nevertheless, the project is behind schedule as a result of delays in the delivery of imports caused by the Covid-19 pandemic and other factors.  Negotiations to amend the turn-key construction contract are ongoing on the basis of extending the capital expenditure programme and spreading out the disbursement schedule over a longer timeframe. This would imply that the hotel would begin operations in Q4 2021.

Key People

Sebastiaan Berger

Sebastiaan Berger

Lead Manager

Sebastiaan A.C. Berger is a Dutch trained lawyer who has resided in Cuba since 1996. He has been assisting foreign investors in Cuba since 1996, first as founder of the Havana office of an international law firm, then as a founding partner of Berger, Young and Associates (1998). He has been the lead investment manager of CEIBA Investments Limited and Representative of the Havana Office of CEIBA Property Corporation Ltd. (CEIBA) since 2002.
Stephen Coltman

Stephen Coltman

Senior Investment Manager

Stephen Coltman is a Senior Investment Manager within the Alternative Investment Strategies division at ASI. Stephen has extensive experience investing across both public and private markets and spent the majority of his formative years based in Latin America, including a 3 year period in Cuba during the 90s. Stephen is a CFA charterholder.*

* CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute

  • Sebastiaan Berger

    Lead Manager

    Sebastiaan A.C. Berger is a Dutch trained lawyer who has resided in Cuba since 1996. He has been assisting foreign investors in Cuba since 1996, first as founder of the Havana office of an international law firm, then as a founding partner of Berger, Young and Associates (1998). He has been the lead investment manager of CEIBA Investments Limited and Representative of the Havana Office of CEIBA Property Corporation Ltd. (CEIBA) since 2002.
  • Stephen Coltman

    Senior Investment Manager

    Stephen Coltman is a Senior Investment Manager within the Alternative Investment Strategies division at ASI. Stephen has extensive experience investing across both public and private markets and spent the majority of his formative years based in Latin America, including a 3 year period in Cuba during the 90s. Stephen is a CFA charterholder.*

    * CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute

John Herring

John Herring

Chairman

John qualified as a Chartered Accountant in 1982. In 1986, John joined the corporate finance department of Kleinwort Benson, where he was involved in the IPOs on the LSE for several companies. In 1996 he established his own private equity advisory business and joined the boards of a number of public and private companies including JD Wetherspoon plc where he became deputy chairman and served as a non-executive director for 14 years. He is currently the non-executive chairman of the Edinburgh Woollen Mill Group Limited. John acts as a Consultant to Northview Investment Fund Limited which currently owns 32,150,544 Ordinary Shares representing 29.86 per cent. of the existing issued share capital of the Company.
Trevor Bowen

Trevor Bowen

Non-Executive Director

Experienced director with over 30 years’ experience spanning across a variety of industries. Trevor spent 11 years as a partner of KPMG and 17 years managing U2 and other artists. Trevor has acted as a non-executive director on a number of boards, most notably a director on the board of Ulster Bank for 9 years, which included 6 years as the chairman of the Banks audit committee. He is an Irish national and a Qualified Chartered Accountant.
Keith Corbin

Keith Corbin

Non-Executive Director

Principal and executive chairman of Nerine International Holdings Limited, a network of trust and fiduciary services companies with operations in Guernsey, British Virgin Islands, Hong Kong, India, and Switzerland and serves as a director of a number of regulated financial services companies. He is also the senior independent non-executive director of HarbourVest Global Private Equity Limited, a FTSE 250 company. Keith is an Associate of Chartered Institute of Bankers (ACIB) and a Member of the Society of Trust and Estate Practitioners (STEP).
Pete Cornell

Peter Cornell

Senior Independent Director

Peter is a founding partner of Metric Capital, a pan-European special situations fund. He is a non-executive Director of F&C Commercial Property Trust Limited and a member of the International Advisory Board of the Madrid Business School. Previously he was Global Managing Partner of Clifford Chance until 2006. During his 36 year tenure with Clifford Chance his roles included managing partner for Spain and Continental Europe. He then became managing director of Terra Firma, a European private equity firm until 2011. Peter holds a BA (Hons) in Economics and History.
Colin Kingsnorth

Colin Kingsnorth

Non-Executive Director

Colin is a partner and director of Laxey Partners Limited, a UK-based active value investment firm focusing on closed-end funds and property investments. Colin previously worked for Robert Fleming Asset Management, headed the investment trust research at Olliff & Partners and managed the emerging markets fund of Buchanan Partners Limited. In 1995, Colin co-founded Regent Kingpin Capital Management. In 1997, he founded Laxey Partners Ltd with Andrew Pegge. Since then Laxey Partners Ltd has become a prominent active value investor focusing on closed-end funds and property investments. Colin holds a BSc in Economics and is a CFA Charterholder.
  • John Herring

    Chairman

    John qualified as a Chartered Accountant in 1982. In 1986, John joined the corporate finance department of Kleinwort Benson, where he was involved in the IPOs on the LSE for several companies. In 1996 he established his own private equity advisory business and joined the boards of a number of public and private companies including JD Wetherspoon plc where he became deputy chairman and served as a non-executive director for 14 years. He is currently the non-executive chairman of the Edinburgh Woollen Mill Group Limited. John acts as a Consultant to Northview Investment Fund Limited which currently owns 32,150,544 Ordinary Shares representing 29.86 per cent. of the existing issued share capital of the Company.
  • Trevor Bowen

    Non-Executive Director

    Experienced director with over 30 years’ experience spanning across a variety of industries. Trevor spent 11 years as a partner of KPMG and 17 years managing U2 and other artists. Trevor has acted as a non-executive director on a number of boards, most notably a director on the board of Ulster Bank for 9 years, which included 6 years as the chairman of the Banks audit committee. He is an Irish national and a Qualified Chartered Accountant.
  • Keith Corbin

    Non-Executive Director

    Principal and executive chairman of Nerine International Holdings Limited, a network of trust and fiduciary services companies with operations in Guernsey, British Virgin Islands, Hong Kong, India, and Switzerland and serves as a director of a number of regulated financial services companies. He is also the senior independent non-executive director of HarbourVest Global Private Equity Limited, a FTSE 250 company. Keith is an Associate of Chartered Institute of Bankers (ACIB) and a Member of the Society of Trust and Estate Practitioners (STEP).
  • Peter Cornell

    Senior Independent Director

    Peter is a founding partner of Metric Capital, a pan-European special situations fund. He is a non-executive Director of F&C Commercial Property Trust Limited and a member of the International Advisory Board of the Madrid Business School. Previously he was Global Managing Partner of Clifford Chance until 2006. During his 36 year tenure with Clifford Chance his roles included managing partner for Spain and Continental Europe. He then became managing director of Terra Firma, a European private equity firm until 2011. Peter holds a BA (Hons) in Economics and History.
  • Colin Kingsnorth

    Non-Executive Director

    Colin is a partner and director of Laxey Partners Limited, a UK-based active value investment firm focusing on closed-end funds and property investments. Colin previously worked for Robert Fleming Asset Management, headed the investment trust research at Olliff & Partners and managed the emerging markets fund of Buchanan Partners Limited. In 1995, Colin co-founded Regent Kingpin Capital Management. In 1997, he founded Laxey Partners Ltd with Andrew Pegge. Since then Laxey Partners Ltd has become a prominent active value investor focusing on closed-end funds and property investments. Colin holds a BSc in Economics and is a CFA Charterholder.

 

Financial calendar

Year End 31 December
Accounts Published April
Annual General Meeting June
Dividend Paid May

Company Details

CEIBA Investments Limited
Registered Office:
Dorey Court,
Admiral Park,
St Peter Port
Guernsey
GY1 2HT

The Company was incorporated in Guernsey as a non-cellular company limited by shares on 10 October 1995 under registration number 30083. It was admitted to the Specialist Fund Segment of the Main Market of the London Stock Exchange on 22 October 2018.

The Company is a Registered Closed-ended Collective Scheme pursuant to The Protection of Investors (Bailiwick of Guernsey) Law, 1987, as amended, and the Registered Collective Investment Schemes Rules 2015 issued by the Commission. The Company operates under the Companies Law and ordinances and regulations made thereunder.

The Company is a country fund with a primary focus on Cuban real estate assets.

The Company will seek to deliver the investment objective primarily through investment in, and management of, a portfolio of Cuban real estate assets, with a focus on the tourism-related and commercial property sectors. Cuban real estate assets may also include infrastructure, industrial, retail, logistics, residential and mixed-use assets (including development projects). The Company may also invest in any type of financial instrument or facility secured by Cuba related cash flows or other receivables.

In addition, subject to the investment restrictions set out below, the Company may invest in other Cuba-related businesses, where such are considered by the Investment Manager to be complementary to the Company’s core portfolio (“Other Cuban Assets”). Other Cuban Assets may include, but are not limited to, Cuba related businesses in the construction or construction supply, logistics, energy, technology, and light or heavy industrial sectors.

Investments may be made through equity, debt or a combination of both.

Risk Warning
Risk warning
The value of investments and the income from them can go down as well as up and you may get back less than the amount invested. Please refer to the relevant Key Information Document (KID) prior to making an investment decision. Please be aware of scams that can affect investors.